I'm a big fan of Dallas/Houston -- the strategy you pursue should be dependent on the property management resources you have in that market & your appetite for property maintenance (higher for STR's).

Was looking into Dallas, Houston and Austin. 

Sqad Up Dallas.  

Places like Dallas and Plano many not have strict regulations yet, but seems like the community is firmly against STR, so that's probably not the side you want to be on.   

I’m considering purchasing a rental property or two in the Dallas area to use as a STR revenue generator and get my feet wet for some passive income before I retire.

If that person needs to buy another house in the same area all those houses have gone up just as much. that's True Eric however many people move  being born and raised in the SF bay area this has played out thousands of times  get your appreciation.. go to Portland pay cash.. go to Dallas pay cash and most peeps that retire usually go someplace cheaper.. really works well for those that can build their own homes live  in them two years and sell profit is now tax free.. more than a few builders do this if they can talk the wife into it :)

and are you located in Dallas?

Is there anyone here on BP that lives in Dallas Texas that invests in Section -8 type properties ?

For example, I am in Dallas, TX - the cap rates are very low here.

We are interested in purchasing single-family homes.We have driven through South Dallas (Fair Park area) and noticed a lot of gentrification happening.